NCUA’s Harper talks present, future of credit union regulation

The future viability and success of credit unions requires planning, flexibility, and agility NCUA Chairman Todd Harper said Tuesday as he outlined the agency’s agenda for credit union regulations during a speech at the Brookings Institution.

The credit union system is “largely stable in its performance and relatively resilient against economic disruptions,” Harper noted, but added “the NCUA has also seen growing signs of financial strain on credit union balance sheets and in household budgets,” along with growing consumer financial stress.

“The NCUA, therefore, continues to watch credit union performance closely and urges credit unions to remain diligent in managing the potential risks on their balance sheets and when monitoring economic conditions and the interest rate environment,” he said.

Harper reiterated NCUA’s support for increased flexibility for the Central Liquidity Facility (CLF) and increased supervisory authority over third-party vendors. America’s Credit Unions supports increased CLF flexibility, but opposes additional third-party vendor authority, and recently wrote in opposition to legislation that would grant the NCUA such authority.

Harper also stated in response to a question from the moderator that the agency is currently working through the Paperwork Reduction Act process to amend the call report to require credit unions over $1 billion to report information related to overdraft and non-sufficient funds fees collected.

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